Season 5 | Episode 508 | EP508
In Season 5, Episode 8 of Shark Tank, James Ambler approached the Sharks seeking an investment of $250,000 in exchange for 20% equity in ‘Paparazzi Proposals’. The company is currently based in New York, NY.
Paparazzi Proposals is a company which specializes in photographing proposals with a slight twist. All photographs are taken ‘in secret’; much in the same way a celebrity would be photographed. This results in fantastic wedding proposal idea for photographs for the ‘wedding album’.
The surprise photography company had achieved $100,000 in sales over the past two years. This is in part down to James’ marketing technique. He went to visit as many small jewelers in the local area as possible. He then requested that they recommend his service to their ring-buying clients. If this result in a ‘sale’ then he would pay a small amount of commission to the recommending jeweler. While the company had already been fairly successful at this stage, James wanted to expand his jeweler shop reach and believed that the Sharks were his best hope at getting his name into some of the larger stores.
Mark Cuban believed that having these services recommended by the larger stores would actually be detrimental to the company. He believed that this would cause the company to expand far too quickly and this would cause the quality of the business to crumble. Other Sharks were interested in making an offer though.
Lori Greiner: $250,000 in exchange for 50% equity in the company.
Kevin O’Leary: $50,000 in exchange for 33% equity in the company. This would be in addition to a $200,000 loan.
Robert Herjavec: $100,000 in exchange for 33% equity plus a $150,000 loan
Secondary Offers Received:
Lori decided to join Kevin in his offer.
With the amount of negotiating going on in the tank Robert Herjavec believed that his offer was not being taken seriously. He promptly pulled out of the running. This left James Ambler very little choice but to either accept Kevin O’Leary and Lori Greiner’s offer or walking away from the Shark Tank with zero investment. He opted for Kevin and Lori’s offer. This meant he left the Shark Tank with $250,000 in cash. $200,000 would be in the form of a loan with $50,000 used to purchase the 33% equity stake.
Lori Greiner has helped launch over 400 products with a 90% success rate on new items launched. Lori looks for products that solve a problem, can be sold at a reasonable price and are appealing to the mass market.
Kevin O’Leary is blunt, colorful outspoken and at times unpredictable. If you want to secure an investment from Mr. Wonderful you’re going to need to show him the money. Kevin loves royalty deals, patent holders and products with licensing potential.